What are brokers forecasting for the Westpac share price in June?

Two brokers pointing and analysing a share price.

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The Westpac Banking Corp (ASX: WBC) share price is on course to end the week with a small gain.

In afternoon trade, the banking giant’s shares are up 0.2% to $23.97.

Can the Westpac share price keep climbing in June?

While it’s impossible to predict what the Westpac share price will do in the immediate term, a number of brokers certainly see potential for it to rise meaningfully from current levels.

One of the most bullish is Citi. Earlier this week, the broker retained its buy rating and $29.00 price target on the bank’s shares.

Based on the current Westpac share price, this implies potential upside of approximately 21% for investors.

According to the note, Citi believes the major banks will see a swing from lending-derived revenue growth to deposit-derived growth as rates rise and credit slows. As a result, its analysts expect the current valuation gap between asset growing and revenue challenged banks will close.

Citi prefers the latter in the current environment, which includes Westpac.

What are other brokers saying?

Elsewhere, analysts at Goldman Sachs currently only have a neutral rating on the company’s shares.

However, with a price target of $27.29, this suggests potential upside of 14% for investors. Not bad for a neutral rating!

Another broker that sees plenty of upside in the Westpac share price is UBS.

In response to the bank’s half-year results last month, its analysts put a buy rating and $27.00 price target on its shares. This suggests potential upside of approximately 13%.

Sitting on the fence

Finally, one broker that isn’t overly positive and is sitting on the fence is Morgans.

It recently went from being arguably the most bullish broker to the most downcast. This saw its analysts downgrade the bank’s shares to a hold rating with a $23.90 price target, which is broadly in line with where the Westpac share price trades now.

However, it is worth noting that the broker’s negative view is on short term issues and it remains positive on the long term. It commented:

We continue to believe that WBC’s stock offers compelling long-term value despite share price strength over the last five months. However, it has been disappointing to see that WBC’s Australian investor home loan book has continued to shrink post FY21 according to APRA statistics.

We believe this contraction is being partially driven by WBC’s business bankers being focused on remediation issues; we had hoped these issues would be resolved by now. We suspect the remediation issues are also hampering WBC’s Australian business loan growth.

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